• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 5/13/2014

China - Corporate income tax rate of 15% as incentive 

May 13: Guidance released by the tax authorities concerns a reduced corporate income tax rate of 15% as available as an incentive for investments made in certain areas of China.

Circular 26 (25 March 2014) was jointly issued by the Ministry of Finance and the State Administration of Taxation as official policy with respect to the corporate tax rate incentive for qualified companies in three new areas:

  • Hengqin new area (Zhuhai Hengqin)
  • Qianhai Shenzhen-Hong Kong modern service industry cooperation zone (Shenzhen Qianhai)
  • Pingtan comprehensive experimental zone (Fujian Pingtan)

Companies established in these areas and that otherwise satisfy certain conditions can benefit from the reduced rate of corporate income tax.

Read a May 2014 report prepared by the KPMG member firm in China: Approval for the 15% preferential Corporate Income Tax rate for Qianhai, Hengqin and Pingtan new areas

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